On the Road to Sustainable Mobility Fuel Cell Electric Vehicles

Michael Schweizer Product Management – Advanced Product Planning Mercedes-Benz USA

November 4, 2009

1. Daimler’s Vision & Strategy

Global Trends

Law / Legislation

Low Carbon Fuel

Standard

ZEV

CAFE

London City Congestion Charge

MBUSA – Product Management Slide 2

Advanced Product Planning

Limited Resources

E.g.: Oil Price

1950 20502000

20

$/barrel

40 60 80

100

?

Creeping Mobility

Megacities Top 5 Ranking

London 6,5

New York 5,5

Tokio 5,2

Paris 4,0

Berlin 2,4

1900 2003 2015

Source: Bronger (1996)

Tokio 35,0

Mexico City 18,7

New York 18,3

Sao Paulo 17,9

Bombay 17,4

Tokio 36,2

Bombay 22,6

Delhi 20,9

Mexico City 20,6

Sao Paulo 20,0

06/08: ∼ $136

1. Daimler’s Vision & Strategy

Daimler’s Technology Portfolio for a Sustainable Mobility

Slide 3 MBUSA – Product Management Advanced Product Planning

Emission free driving with fuel cells and battery vehicles

Optimizing our vehicles with modern conventional powertrains

Hybridization for further increase in

efficiency

Energy for future mobility

Clean fuels for combustion engines Emission free driving

HYBRID Range Extender Plug-In

BlueEFFICIENCY

CGI BlueTec DIESOTTO Fuel Cell Veh. Battery-/E-Drive

NGT

3

H2

25

75

125

Technology Change

1. Daimler’s Vision & Strategy

Total Energy Balance – Well-to-wheel Classification Fuel Cell: long range (> 250 mi), short refueling time (3 min), cars/vans/trucks

Battery: ideal in small cars for city traffic (50 – 100 mi), overnight recharging

200 Internal Combustion Engines

175

GasolineHybrid 150 Fuel Cell (Diesel) Diesel (Fueled by 100%

GH

G* E

mis

sion

s [g

CO

2eq/

km]

Hybrid H2 from fossil sources) (Gasoline)

100 Fuel Cell (PI) (Fueled by 100%

renewable electricity) Battery electric vehicle (Fueled by 100%Battery electric vehicle 50 electricity from EU-Mix) (Fueled by 100%

renewable electricity) Fuel Cell (Fueled by 100%

renewable H2) 10 20 30 40 60 70 80 110 120 130 160 170 180 210 220140150 190200 2302400 50 90 100

Source: EUCAR/CONCAWE "Well-to-Wheels Report 2004"; Optiresource, 2006 Reference vehicle class: VW Golf Energy Consumption Well to Wheel [MJ/100km]

*GHG: Green House Gas MBUSA – Product Management

Slide 4 Advanced Product Planning

1. Daimler’s Vision & Strategy

Optimal Mobility Scenarios – Call for an Innovative Powertrain Portfolio

Long Distance Interurban Urban

Combustion Engine

Hybridization

Plug-In/Range Extender

Battery Drive

Prinzipielle Einsetzbarkeit von Elektroantrieben in verschiedenen Fahrzeugklassen Fuel Cell

¾ Only fuel cell technology is suited equally for both, short and long distance mobility.

MBUSA – Product Management Slide 5

Advanced Product Planning

2. Emission-Free Driving

Daimler’s Fuel Cell Technology Roadmap

Bus

Future Generations

Generation 1 Technology Demonstration

Generation 2 Customer Acceptance

Generation 1 Technology Demonstration

F-Cell

Generation 2 Customer Acceptance

B-Class F-Cell

Generation 3 Cost Reduction I

Generation 4 Market Introduction Cost Reduction II

Passenger CarsLead Application

Generation 5 Mass Production

2004

2010

Sprinter

Future Generations

Generation 1 Technology Demonstration

Generation 2 Customer Acceptance

¾ Daimler is dedicated to commercialize Fuel Cell Vehicles

Slide 6 MBUSA – Product Management Advanced Product Planning

2. Emission-Free Driving

Progress Fuel Cell Technology - Next Generation FCVs

A-Class F-Cell B-Class F-Cell Next generation of the fuel cell-power train:

• Higher stack lifetime (>2000h)

• Increased power • Higher reliability • Freeze start ability • Li-Ion Battery

Consumption Range Size Power - 16% +150% - 40% +30%

[kW

]

[ l/10

0km

[km

]

MBUSA – Product Management Slide 7

Advanced Product Planning

Preliminary Vehicle Deployment PlanningB-Class F-Cell and Subsequent Models

2. Emission-Free Driving

0

x0000

y0000

z0000 Sacramento Region

Bay Area

L.A. Region

0

xx

yy

zz „Tens“ of vehicles

„Ten thousands“ of vehicles

2009 2010 2011 2002-14 2015-17

¾ The order of magnitude presented above is in line with our product strategy

Slide 8 MBUSA – Product Management Advanced Product Planning

2. Emission-Free Driving -The Need for Infrastructure

• All relevant OEMs (engaged in Fuel Cell technology) signed the LoU: a fewhundred thousand (100.000) units over life cycle on a worldwide basisInitiative “H2 Mobility” for Germany as lead market in Europe

• The infrastructure partner pursue a step by step approach to build-up an area-wide H2 infrastructure

Slide 9 MBUSA – Product Management Advanced Product Planning

2. Emission-Free Driving

The signing of the “OEM-LoU“ by several OEMs was one basic prerequisite for the Oil and Energy companies to sign the “Infrastructure-MoU“

OEMs: Letter of Understanding (LoU) Basis „Commitment to the development and

market introduction of Fuel Cell vehicles“ for

• From 2015 onwards a quite significant number of fuel cell vehicles could be commercialized. This number is aimed at a few hundred thousand (100.000) units over life cycle on a worldwide basis.

• In order to ensure a successful market introduction of fuel cell vehicles, this market introduction has to be aligned with the build-up of the necessary hydrogen infrastructure by 2015.

• The network should be built-up from metropolitan areas via corridors into area-wide coverage.

Involved OEMs

Daimler, Ford, GM/Opel, Honda, Hyundai/KIA, the Alliance Renault/Nissan and Toyota

Infrastructure Partner: Memorandum of Understanding (MoU) for

„H2 Mobility“

• In Germany 10-25 public fueling stations should be build-up until 2011 by the involved companies within the stimulus package II.

• The build-up of the H2-infrastructure in Germany, as starting point in Europe, will be carried out in 2 steps: 1. Step: Development of a common Business Plan for the build-up of an area-wide infrastructure. The Business plan is the basis for the foundation of a consortium

2. Step: Foundation of a consortium (from approx. 2012 build-up of an area-wide H2 fuelling station network)

Involved companies - Daimler, EnBW, Linde, OMV, Shell, Total und Vattenfall - Neutral facilitator: NOW GmbH

MBUSA – Product Management Slide 10

Advanced Product Planning

2. Emission-Free Driving

H2-infrastructure build up in Germany New fuelling station deployment over time (2010 - 2017)

2013 2015 2017

Slide 11 MBUSA – Product Management Advanced Product Planning

¾ A „Banana“ connecting major western German cities will be the starting point for the hydrogen infrastructure

small mediumlarge

2. Emission-Free Driving

How to Bridge the Gap from Isolated Demonstration Projects to Mass Market Mobility

� OEMs have made substantial investments in fuel cell technology. Fuel cell vehicles are now close to reaching mass market readiness.

� Daimler is committed to developing a substantial retail fuel cell vehicle fleet in California � Daimler and other OEMs need a commitment from others to fund hydrogen fueling infrastructure � Daimler sees California as a global leader in H2 fuel cell vehicle market development � Without a commitment to funding for a sufficient number of H2 fueling stations in California,

Daimler will find it difficult to justify the continuation of its California fuel cell program when resources can be focused on the thriving European H2 program.

¾ Several hundred thousand fuel cell cars in California are possible until the year 2020 – a step towards environment-friendly mobility!

¾ However to reach this goal, a sufficient number of fueling stations is essential.

MBUSA – Product Management Slide 12

Advanced Product Planning

Thank you